Finance
Germany embarks on 'radical change' to finance renewables
A government compromise in Berlin envisions radical changes to the country’s renewables subsidy approach and details a fleet of backup power plants to underpin the country’s coal exit.
Designed in the late 1990s, Germany’s renewable energy law guarantees wind turbine and solar panel owners a 20-year high price for electricity fed into the grid. The country quickly became famous for its pioneering Energiewende.
This paradigm is on the brink of change, the government announced on Friday (5 July), against the backdrop of fiscal strain and an identified need for backup power generation.
“Our goal is an electricity market that ensures a secure, affordable and greenhouse gas-neutral supply of electricity with at least 80% from renewables,” reads the coalition government’s internal agreement.
To that end, two fundamental principles of the renewables subsidy scheme will be changed as of 2025.
Firstly, there is no remuneration for power produced during times of negative prices when there is already excess power being supplied to the grid. The move pulls forward an EU requirement by two years.
Secondly, there is a paradigm shift in how renewables are supported by the state.
“The expansion of new renewable energies is to be switched to investment cost subsidies,” the agreement reads, adding that this should be done “to allow price signals to have a distortion-free effect.”
Currently, government support is linked to electricity production, ensuring that renewable developers can ensure a minimum revenue level for every unit of power produced.
From guaranteed earnings to a lump sum investment subsidy is a leap – “The experiment of a radical change to investment cost subsidies contains the risk of market uncertainty,” said renewables lobby group BEE on Friday.
For the liberal FDP (Renew), the smallest government party, making the change was long coming.
“I am delighted that we are starting to phase out the renewables subsidy scheme [EEG],” said MP Michael Kruse, the FDP’s energy spokesman, in an accompanying press release.
The free-market party’s opposition to the scheme is in part due to its high cost—subsidising renewables will cost “€17 billion, that is the current calculation for next year,” said FDP Finance Minister Christian Lindner at a press conference in Berlin on Friday.
Not all are happy with this agreement to phase out the traditional mechanism, even within the government.
“From today’s perspective, it is neither feasible nor, strictly speaking, intended to subsidise investment costs, rather only as a test model or laboratory,” said MP Nina Scheer, the left-of-centre SPD party’s energy spokeswoman, in emailed comments to Euractiv. The SPD are a member of the government coalition.
“In my opinion, the model contains obvious investment risks. These must be avoided at all costs,” she added.
The transition would need to happen in the coming years to have a meaningful effect, given that the government similarly vowed to stop supporting renewables once coal is no longer being burned for power – 2038 at the latest.
Safeguarding the coal exit
A second major milestone in the German energy transition will be the construction of new gas power plants – some of which can run on hydrogen.
“The construction of new power plants will secure the coal phase-out,” explained Robert Habeck, minister of economy and climate action, on Friday. The coal exit for 2030, which is “ideally” envisioned by the government, is largely considered to be unattainable.
Within the year, Berlin hopes to tender five gigawatts (GW) of new gas power plants for immediate construction, abandoning plans for a fully hydrogen-ready fleet. This would be followed by another five GW of plants that must run on hydrogen, but only from the eighth year of their operation. Two GW of old gas plants should be retrofitted.
Half a GW of dedicated first-day hydrogen power plants will also be built, alongside another half GW of long-term energy storage facilities.
The plants will be put into a “comprehensive, technology-neutral capacity mechanism, which will be operational from 2028.”
Andreas Jahn, senior advisor at clean-energy think tank RAP, explains that the plan “represents an important compromise that secures the transformation of the German electricity system.”
All of this will require market subsidies that have been “in principle” greenlit by Brussels.
“Following intensive discussions between the Commission services and the German authorities,” the two agreed on “a way forward,” a Commission spokesperson told Euractiv.
“Germany plans to launch the first competitive bidding process at the end of 2024/in early 2025,” they added.
[Edited by Donagh Cagney/Alice Taylor]
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Texas restaurant operators are continuing to face mounting financial pressure as rising food and fuel costs impact businesses across the state, according to the latest quarterly economic report from the Texas Restaurant Association.
The association’s 2026 first-quarter report shows that many restaurant owners are struggling to keep up with increased operating expenses while trying to avoid passing those full costs on to customers.
“You know, what we’re seeing a lot of in Texas from these quarterly economic reports that we do is that food costs continue to rise,” said Texas Restaurant Association Chief Marketing Officer Tony Abroscato. “We all know that it’s up 35% since the pandemic. And so that’s an impact on our restaurant.”
According to the report, 77% of restaurant operators reported increased costs of goods, while 66% said suppliers have added fuel surcharges as gas prices continue to climb.
“We’re seeing that 90% of consumers start to adjust their habits based upon rising gas prices,” said Tony Abroscato. “Then also those gas prices impact the cost of food because everything is trucked and shipped and a variety of different things.”
In addition to rising costs, labor shortages remain a major concern for restaurant owners. More than half of association members reported difficulties finding enough workers.
“You know, immigration is difficult and has had an impact on the restaurant industry, the farming industry, which again, then raises prices along the way,” said Abroscato.
Despite the financial challenges, the Texas Restaurant Association’s 2026 first-quarter report shows that Texas restaurants are only passing a portion of those increased costs on to customers while absorbing the rest through reduced profits.
Some restaurant owners have been making changes to adjust, like limiting menu items or even turning to QR code ordering, Abroscato said.
Copyright 2026 by KSAT – All rights reserved.
Finance
Household savings, income and finances in Spain: how did they fare in 2025 and what can we expect for 2026?
In 2025, GDI grew above the rate of average annual inflation (2.7%) and the growth in the number of households (1.3% according to the LFS), which allowed for a recovery in purchasing power. In this context, real household income has grown by 4.5% since before the pandemic, highlighting that households have continued to gain purchasing power in real terms.
The strong financial position of households is reflected not only in the high savings rate but also in their financial accounts. In this regard, households’ financial wealth continued to increase in 2025: their financial assets amounted to 3.4 trillion euros at the end of the year, versus 3.1 trillion at the end of 2024. This increase of 292 billion euros is broken down into a net acquisition of financial assets amounting to 95 billion, higher than the 21.5-billion average in the period 2015-2019, when interest rates were very low, and a revaluation effect of 194 billion. When breaking down the net acquisition of assets, we note that households invested 42 billion euros in equities and investment funds, just under 9.6 billion less than in deposits, while they disposed of debt securities worth 6 billion following the fall in interest rates.
On the other hand, households continued to deleverage in 2025, and by the end of the year their financial liabilities stood at 46.9% of GDP, compared to 47.8% in 2024, the lowest level since the end of 1998. This decline reflects the fact that, in 2025, households took advantage of the interest rate drop to prudently incur debt: net new borrowing amounted to 35 billion euros, representing an increase of 3.8%, which is lower than the nominal GDP growth of 5.8% and the GDI growth of 5.3%.
As a result of the increase in financial assets and the decrease in liabilities as a percentage of GDP, the net financial wealth of households recorded a notable increase of 7.3 points compared to 2024, reaching 156.8% of GDP.
FRESNO, Calif. (KFSN) — Mayor Jerry Dyer has unveiled his 2026- 2027 budget proposal at Fresno’s City Hall.
The overall budget total is $2.55 billion, with a majority of the funding going to public works, utilities, police and FAX.
The mayor also highlighted several investments, including a 10-year tree trimming cycle, the Homeless Assistance Response Team and an America 250 celebration.
Dyer says that despite some challenging circumstances, the City of Fresno’s long-term financial condition remains healthy.
“We’re pleased to say that based on increasing revenues and sound financial management, as well as a very healthy reserve, the city of Fresno has a strong financial outlook,” he said.
Dyer’s office says the budget is a comprehensive financial plan that reflects the city’s ongoing commitment to the “One Fresno” vision.
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